Selling House - Mortgage Prepay Penalties

What is the name of your state? PA

I am in the process of selling my home, which myself and my ex-wife refinanced last year with the understanding that she would remain in the house (that's obviously not happening). When we refinanced last year, we had a prepay penalty rider that states, "...you will pay a prepayment charge in an amount equal to the payment of 6 mths advance interest on the amount by which the total of my prepayments within that 12 mth period exceeds 20% of the original principal amt of loan". Our current mortgage balance is $107,000 and our monthly payment is approx. $640.

My questions are; 1) Is it legal to have and enforce this prepayment penalty rider in PA, and 2) how the heck do I determine the amount (approx.) of the penalty?

Thanks!!

[HomeGuru]

Originally posted by Conerned_dad1
What is the name of your state? PA

I am in the process of selling my home, which myself and my ex-wife refinanced last year with the understanding that she would remain in the house (that's obviously not happening). When we refinanced last year, we had a prepay penalty rider that states, "...you will pay a prepayment charge in an amount equal to the payment of 6 mths advance interest on the amount by which the total of my prepayments within that 12 mth period exceeds 20% of the original principal amt of loan". Our current mortgage balance is $107,000 and our monthly payment is approx. $640.

My questions are; 1) Is it legal to have and enforce this prepayment penalty rider in PA, and 2) how the heck do I determine the amount (approx.) of the penalty?

Thanks!!

**A: consult with a mortgage broker.